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New Options For First Time Home Buyers

By : acelegal, March 27, 2018

Have you always wanted to own your own home but worry that your income is not enough to secure an affordable mortgage rate? Hundreds of people across the country find themselves in this position every year, and new schemes being introduced in Ireland may have the potential to change things for them and for you.

From Thursday 1st February 2018, borrowers looking to buy their first home can borrow via a scheme called the Rebuilding Ireland Loan. This scheme is designed to offer mortgages with much lower rates than the averages offered by banks, fixed for the lifetime of the loan, enabling more certainty of repayment over the lifetime of the loan.

This is great news for prospective buyers who are struggling with the higher interest rates and uncertain interest rate increases that banks are currently offering. There are some restrictions to the scheme, and some handy tips that you should know, including the following:

What You Should Know About The Rebuilding Ireland Loan

• The Rebuilding Ireland Loan can be used to buy new and second-hand properties or to build a new house.

• The scheme aims to offer a ‘realistic and affordable opportunity’ to become a homeowner to hundreds of low and middle-income earners.

• Applicants must be over 18, and can apply as a single applicant if their gross income is not more than €50,000 or as joint applicants with a gross income of not more than €75,000.

• Applicants, single or joint, can borrow up to 90% of the market value of the property they are purchasing, provided that this value is less than €320,000 in the greater Dublin area, including Cork and Galway, or €250,000 in the rest of Ireland.

• There are concerns that the amount of affordable properties under the scheme will not meet demand, and this may be addressed by a proposal for an Affordable Purchase Scheme which allows for the building of thousands of affordable homes on State land.

Talk To Property Solicitors in Cork

Are you looking to buy your first home? The options available to you will depend upon your personal circumstances, your income and the size of your deposit, and you can discuss your options with a solicitor who is experienced in conveyancing and property law. We are always on hand to talk to you about your situation, and we will work with you to create the very best outcomes.